third quarter 2026
Filed Nov 4, 2026Third-quarter net investment income was $6.6 million, or $0.16 per share, while net assets decreased by $1.7 million, or $0.04 per share; TPVG declared a fourth-quarter regular distribution of $0.23 per share.
Third-quarter investment income, net investment income and portfolio yield were lower than the prior-year period, while the Company recorded a net decrease in net assets resulting from operations. The portfolio had $18.1 million of unrealized gains, but these were outweighed by $26.4 million of realized losses. Liquidity was $168.0 million and post-quarter funding activity was $57.4 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total investment and other income, three months ended September 30, 2026GAAP | $20.17M | – | – |
| Interest income from investments, three months ended September 30, 2026GAAP | $20.03M | – | – |
| Other income, three months ended September 30, 2026GAAP | $142K | – | – |
| Total operating expenses net of Income incentive fee waiver, three months ended September 30, 2026GAAP | $13.24M | – | – |
| Interest expense and amortization of fees, three months ended September 30, 2026GAAP | $7.87M | – | – |
| Base management fee, three months ended September 30, 2026GAAP | $3.56M | – | – |
| Income incentive fee, three months ended September 30, 2026GAAP | — | – | – |
| Income incentive fee waiver, three months ended September 30, 2026GAAP | — | – | – |
| Excise tax expense, three months ended September 30, 2026GAAP | ($ 350) (in thousands) | – | – |
| Net investment income after excise taxes, three months ended September 30, 2026GAAP | $6.59M | – | – |
| Net investment income per share, three months ended September 30, 2026GAAP | $0.16 per share | – | – |
| Net realized gains (losses) on investments, three months ended September 30, 2026GAAP | ($ 26,421) (in thousands) | – | – |
| Net change in unrealized gains (losses) on investments, three months ended September 30, 2026GAAP | $18.12M | – | – |
| Net realized and unrealized gains/(losses), three months ended September 30, 2026GAAP | ($ 8,300) (in thousands) | – | – |
| Net increase (decrease) in net assets resulting from operations, three months ended September 30, 2026GAAP | ($ 1,714) (in thousands) | – | – |
| Net increase (decrease) in net assets per share, three months ended September 30, 2026GAAP | ($ 0.04) | – | – |
| Weighted average portfolio yield on debt investments, three months ended September 30, 2026other | 12.4 % | – | – |
| Weighted average portfolio yield including non-income producing debt investments, three months ended September 30, 2026other | 11.8% | – | – |
| Return on average equity, third quarter 2026other | 7.4% | – | – |
| Total investment and other income, nine months ended September 30, 2026GAAP | $65.09M | – | – |
| Total operating expenses net of Income incentive fee waiver, nine months ended September 30, 2026GAAP | $40.06M | – | – |
| Net investment income after excise taxes, nine months ended September 30, 2026GAAP | $24.05M | – | – |
| Net investment income per share, nine months ended September 30, 2026GAAP | $0.59 per share | – | – |
| Net realized and unrealized gains/(losses), nine months ended September 30, 2026GAAP | ($ 8,932) (in thousands) | – | – |
| Net increase (decrease) in net assets resulting from operations, nine months ended September 30, 2026GAAP | $15.11M | – | – |
| Net increase (decrease) in net assets per share, nine months ended September 30, 2026GAAP | $ 0.37 | – | – |
| Weighted average portfolio yield on debt investments, nine months ended September 30, 2026other | 12.9 % | – | – |
| Total investments at fair value, September 30, 2026GAAP | $717.3M | – | – |
| Total net assets, September 30, 2026GAAP | $339.9M | – | – |
| Net asset value per share, September 30, 2026GAAP | $ 8.32 | – | – |
| Net leverage ratio, September 30, 2026non-GAAP | 1.12x | – | – |
| Gross leverage ratio, September 30, 2026other | 1.18x | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Fourth quarter 2026 regular distribution of $0.23 per share, payable on December 30, 2026 to stockholders of record as of December 16, 2026.
- The first $0.06 per share supplemental distribution was paid on September 30, 2026.
- The second $0.06 per share supplemental distribution will be paid on December 30, 2026 to stockholders of record as of December 16, 2026.
- Paid distributions of $0.75 per share year to date 2026.
- The Board authorized a 12-month stock repurchase program for up to an aggregate of $12.5 million; as of September 30, 2026, the Company had not repurchased any shares pursuant to the authorization.
- TPC purchased 313,865 shares of common stock in a private transaction, bringing its holdings to 2,312,354 shares, representing 5.7% of outstanding common shares as of September 30, 2026.
What drove it
- Total investment and other income declined primarily because of lower investment yields, in part due to a lower Prime rate.
- The decline in quarterly net investment income was driven primarily by lower total investment and other income and higher interest expense.
- The Company sold its Prodigy Investments Limited investments to a third party for total cash consideration of $43.8 million, reflecting fair value as of June 30, 2026 plus accrued cash interest.
- During the quarter, seven portfolio companies raised an aggregate $2.6 billion in private financings; five active debt portfolio companies raised an aggregate $1.5 billion.
- Subsequent to quarter-end through November 3, 2026, TPVG funded $57.4 million in new investments and received $72.6 million of principal prepayments generating more than $2.0 million of accelerated income.
Concerns
- Net realized losses on investments were $ 26,421 (in thousands) in the third quarter, primarily from the sale of debt, warrant and equity investments in one portfolio company and the write-off of a debt investment in one portfolio company.
- Debt investment fair value in the Yellow credit category was $ 136,497 (in thousands), or 23.8% of total debt investments, as of September 30, 2026.
- Two portfolio companies with an aggregate principal balance of $33.8 million were downgraded from White (2) to Yellow (3) during the quarter, excluding fundings and repayments.
- Unfunded commitments totaled $171.6 million as of September 30, 2026, including $14.8 million dependent on portfolio companies reaching certain milestones.
- The debt portfolio at cost was $665.3 million at quarter-end, while $72.6 million of principal prepayments were received subsequent to quarter-end through November 3, 2026.
What to watch
- Execution against $106.0 million of non-binding term sheets signed by TPC in the quarter and $125.0 million of additional non-binding signed term sheets subsequent to quarter-end.
- Deployment of the $150.0 million of Revolving Credit Facility capacity, subject to borrowing base restrictions, and the impact of post-quarter prepayments.
- Portfolio credit migration after the weighted average investment ranking improved to 2.24 from 2.28 at the end of the prior quarter, alongside White-to-Yellow downgrades.
- The effect of the Adviser waiving its quarterly income incentive fee in full through the end of fiscal year 2027.
- Completion and terms of any repurchases under the $12.5 million authorization, which expires on May 6, 2027.
Balance sheet and cash flow
- Total liquidity was $168.0 million as of September 30, 2026, consisting of cash, cash equivalents and restricted cash of $18.0 million and $150.0 million of available capacity under the Revolving Credit Facility, subject to borrowing base restrictions.
- Cash and cash equivalents were $ 17,607 (in thousands) and restricted cash was $ 393 (in thousands) as of September 30, 2026.
- Revolving Credit Facility borrowings were $ 150,000 (in thousands) as of September 30, 2026.
- 2027 Notes were $ 124,882 (in thousands), 8.11% 2028 Notes were $ 49,667 (in thousands), and 7.50% 2028 Notes were $ 74,798 (in thousands) as of September 30, 2026.
- The 1940 Act asset coverage ratio was 185% at quarter-end.
- Estimated spillover income was $36.9 million, or $0.90 per share, as of September 30, 2026.
Analysis
Third-quarter operating income from the portfolio softened. Total investment and other income was $ 20,173 (in thousands), compared with $ 22,656 (in thousands) in the third quarter of 2025, and the weighted average portfolio yield on debt investments was 12.4 %, compared with 13.2 %. Management attributed lower income primarily to lower investment yields, in part due to a lower Prime rate. Interest expense and amortization of fees increased to $ 7,871 (in thousands) from $ 6,770 (in thousands), while total operating expenses net of the income incentive fee waiver were $ 13,237 (in thousands), compared with $ 11,971 (in thousands).
Net investment income after excise taxes was $ 6,586 (in thousands), or $0.16 per share, compared with $ 10,310 (in thousands), or $0.26 per share. For the first nine months, net investment income after excise taxes was $ 24,045 (in thousands), compared with $ 32,323 (in thousands), while the nine-month debt portfolio yield was 12.9 % versus 14.0 %. The Adviser waived $3.2 million in income incentive fees earned in the first nine months and, subsequent to quarter-end, amended its waiver to waive its quarterly income incentive fee in full through the end of fiscal year 2027.
Portfolio marks were the principal determinant of the quarterly net-asset result. TPVG reported $ 18,121 (in thousands) of net unrealized gains on investments, including reversal of previously recorded unrealized losses on investments realized during the period and fair-value gains in the warrant and equity portfolio. This did not offset $ 26,421 (in thousands) of net realized losses. Net assets consequently decreased by $ 1,714 (in thousands), or $ 0.04 per share, versus a $ 15,233 (in thousands) increase, or $ 0.38 per share, a year earlier. Net asset value was $ 8.32 per share at September 30, 2026, compared with $ 8.73 at December 31, 2025.
Credit data were mixed. The weighted average investment ranking improved to 2.24 from 2.28 at the end of the prior quarter, but two companies with an aggregate $33.8 million principal balance moved from White (2) to Yellow (3). Yellow investments represented $ 136,497 (in thousands), or 23.8% of total debt investments at fair value. The portfolio also benefited from capital-raising activity, with seven portfolio companies raising an aggregate $2.6 billion during the quarter.
Liquidity was $168.0 million and the net leverage ratio was 1.12x at quarter-end. TPVG closed $43.0 million in new debt commitments but funded only $0.7 million in debt investments during the quarter. Subsequent activity was more substantial, with $60.0 million of additional debt commitments closed, $57.4 million funded in new investments, and $72.6 million of principal prepayments received. Capital returns include the declared fourth-quarter regular distribution of $0.23 per share and supplemental distributions totaling $0.12 per share. The release did not provide financial guidance.
Management, verbatim
We continue to advance our sector rotation and diversification strategy, as we invest in companies across AI and other attractive sectors and take advantage of strong demand for debt financing from high-quality, venture-growth stage companies. We remain focused on disciplined underwriting, further strengthening our portfolio and financial position, and capitalizing on market opportunities that enhance our earnings power and grow NAV over the long term.
Jim Labe, chairman and chief executive officer of TPVG
We are pleased with the success of a number of TPVG portfolio companies raising capital. During the third quarter, seven of our portfolio companies raised $2.6 billion, of which five are active debt portfolio companies that raised an aggregate $1.5 billion.
Sajal Srivastava, president and chief investment officer of the Company
Not in the filing
stated, not guessed- Company revenue, gross margin, operating income, net income and EPS are not reported because the Company reports investment-company financial statements rather than those line items.
- Operating cash flow and free cash flow are not reported.
- No forward revenue, yield, expense, earnings, NAV, leverage or other financial guidance was provided.
- No previous outlook section was provided, so a comparison of actual results with prior guidance is unavailable.
- Prior-quarter values are not reported for the listed operating metrics.
- Percentage year-over-year changes are not printed for the listed operating metrics.
- Segment revenue and segment results are not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.